Internal Assignment April 2023 Exam.

: Consumer Behaviour
Answer for Question 1:

Introduction:
Consumer ethnocentrism is a term used to describe consumers' attitudes and perspectives about
goods and services produced domestically as opposed to those produced elsewhere. It refers to the
extent to which home goods and services are preferred by consumers over foreign ones. This essay
will examine the concept of customer ethnocentrism, the distinctions between ethnocentric and
non-ethnocentric consumers, and the relationship between these traits and customer groups in the
automobile industry.
Concepts and applications:
Consumer ethnocentrism is the tendency for consumers to favour domestically produced goods
and services over those from other countries. The belief that one's nation's products are superior to
those of other nations and the desire to support domestic industries and businesses. Typically,
national pride, cultural ties, and a desire to support the local economy motivate consumer
ethnocentrism. Globalization and international trade may also have an impact. Depending on
context and point of view, ethnocentrism can have both positive and negative effects on customers.
On the one hand, it can stimulate regional economic development and domestic industrial support.
It can restrict consumer options and foster prejudice and discrimination against foreign-made
goods and cultures.

Different perspectives and actions are taken by ethnocentric and non-ethnocentric clients while
evaluating domestic and international products and services. Here are some key differences
between the two:
● Non-ethnocentric consumers are more tolerant and welcoming of foreign products than
their ethnocentric counterparts.
● Non-ethnocentric consumers are more likely to evaluate products based on their own
qualities, regardless of their origin.
● Even if domestic goods are more expensive or of lower quality than imported goods,
ethnocentric consumers are more likely to purchase them. Non-ethnocentric consumers are
 more likely to focus their purchasing decisions on quality, price, and other objective
factors, regardless of the origin of the products.
● Non-ethnocentric consumers are more interested in experiencing and learning about
diverse cultures than ethnocentric consumers.
● Non-ethnocentric consumers are more inclined to regard globalization as an opportunity
for economic growth and cultural exchange than ethnocentric consumers.
In general, ethnocentric consumers are more provincial and closed-minded, whereas non-
ethnocentric consumers are more cosmopolitan and open to worldwide influences. This has
significant ramifications for multinational corporations aiming to acquire consumers with various
cultural attitudes and preferences.
● Give segmentation examples for these two sorts of automotive buyers.
● Car production is a well-known illustration of how ethnocentrism can differ between
customer groups. Listed below are examples of ethnocentric and non-ethnocentric car
customer segments:
This sector consists of domestic carmaker loyalists who prefer to buy domestically produced
vehicles. They believe that domestic automotive brands are superior in terms of quality and
dependability to foreign brands. Moreover, ethnocentric clients usually value patriotism and local
economic success. This phrase may apply, for example, to a consumer who purchases only
American-made vehicles on the basis that foreign-made vehicles are unreliable and do not support
American jobs.
Clientele devoid of ethnocentrism: This category comprises consumers who are more receptive to
foreign-made autos. They evaluate automobiles on the basis of their attributes, quality, pricing,
and other objective aspects, rather than their country of origin. Non-ethnocentric consumers may
also appreciate variety and diversity in automotive options and have a favorable opinion of foreign
manufacturers. Consumers are willing to buy an automobile from Japan, Germany, or South Korea
based on its performance and quality, rather than its country of origin.

Automobile manufacturers must comprehend these diverse consumer groups and cater to their
specific needs and preferences. A domestic automaker may, for instance, target the ethnocentric
client niche by highlighting its commitment to the local economy and American heritage. Instead
of emphasizing its country, a foreign automaker may attract non-ethnocentric consumers by
emphasizing its innovation, performance, and cutting-edge technology. Automakers may build
marketing strategies that appeal to ethnocentric and non-ethnocentric consumers by knowing these
qualities.
Acknowledge the significance of each consumer segment
For the automobile industry and other industries dependent on international commerce and
competitiveness, ethnocentric and non-ethnocentric consumer segments are necessary. The
following instances serve as examples of supporting evidence:
● Ethnocentric consumers like local enterprises and are more likely to purchase domestically
manufactured products. This can provide essential support for local industries and boost
home economic expansion.
● Non-ethnocentric consumers foster innovation and competition: Consumers that are not
ethnocentric are more receptive to international goods and services, which can promote
global innovation and market competitiveness. This may result in enhanced consumer
goods and services and contribute to economic expansion and growth.
● Ethnocentric clients are a dependable clientele: Customers with an ethnocentric perspective
are frequently repeat buyers who create a considerable client base for domestic enterprises.
This can help businesses maintain a steady revenue stream and endure economic
downturns.
● Non-ethnocentric consumers are receptive to discovering new brands and products from
around the globe, allowing firms to increase market share and client base.
● Both ethnocentric and non-ethnocentric customers contribute essential feedback. This
could help firms improve their offerings and remain competitive in the global marketplace.
● Both customer segments are vital to the automobile industry and other industries dependent
on foreign trade and competitiveness. Knowledge of each group's unique requirements and
preferences can aid the development of efficient marketing strategies and the maintenance
of global market competitiveness.

Conclusion:
Consumer ethnocentrism is vital for businesses that operate abroad. Understanding the differences
between ethnocentric and non-ethnocentric consumers can help businesses tailor their marketing
strategies and provide greater customer service. The automobile industry is a prime illustration of
how these disparities can manifest in various client segments, highlighting the importance of
responding to each segment's unique demands and preferences. Businesses may be better
positioned to manage the challenges and opportunities of a global economy if they comprehend
the effects of client ethnocentrism.
Answer for Question 2:

Introduction:
Rituals have a substantial impact on client behaviour. As part of a religious or cultural ceremony,
they are executed. Rituals are ingrained in human existence and profoundly impact individuals'
purchasing decisions. Under the context of consumer behaviour, this essay will illustrate how
rituals create value for both marketers and consumers. In addition, we will evaluate the products
and services obtained through India's five most important ritual types.

It is possible to distinguish ritual behaviour in the varied minds that symbolize the activities of
religious leaders and priests to study the traditions of the people and make the required
adjustments. In consideration of the client's desires, the ritual produces desirable behaviours,
outcomes, and objects. In contrast to conventional rituals, contemporary rituals encourage
customers to engage in activities based on concepts that are highly credible to rival marketers and
consumers. To create a pleasant work environment, it is permissible for both parties to incorporate
marketing and consumer ideals. Product consumption patterns, product design, and product
preparation are effective online marketing methods, according to marketing experts. This section
examines consumer behaviour, advertising, and consumer concepts. Assessment of the
significance of the Indian environment, namely the festivals.

Concepts and applications:

Rituals in Consumer Behaviour

● As a part of a religious or cultural tradition, rituals are performed. This may involve prayer,
the burning of candles, or the consumption of specific foods or beverages. Rituals are
deeply ingrained in the lives of individuals and have a significant influence on their
product-related behaviours and attitudes.
● In terms of consumer behaviour, rituals are useful for both marketers and consumers.
Rituals allow marketers to build an emotional bond with consumers. By incorporating the
cultural and religious practices of consumers, marketers can create more effective products
and services. Rituals provide consumers with a sense of familiarity and comfort. They
fortify their link to their cultural and religious history as well as their sense of self.
 ● Rituals in India are time- and location-restricted, repetitive behaviours including language,
symbolic objects, and competitive actions. India's diverse racial and ethnic composition
leads to religious practices that differ from those of the United States. So that consumers
or employees can celebrate with their families and be cognizant of the six unique economic
seasons, the most significant festivals are related with the fundamental principles of Indian
cultures. To maximize national contribution, the promotion of Buddhism, Hinduism, and
other religions is regarded as a crucial component of Indian culture. In addition, it is backed
by Indian culture and religious beliefs, which are known for their rich culture, diverse
environment, and extensive history.

Five Variations on Common Hindu Rituals

1. Diwali, also known as the Festival of Lights, is one of India's most important celebrations.
It is marked by the lighting of diyas and candles, the decorating of homes with rangolis,
and the exchange of gifts. At this event, individuals purchase candies, chocolates, dried
fruits, and gifts including jewellery, apparel, and technology.
2. Holi is celebrated by throwing water and coloured powders. At this fair, among other items,
visitors can purchase coloured powders, water pistols, balloons, and confectionery.
3. Raksha Bandhan is a festival that celebrates the bond between brothers and sisters. Sisters
place a rakhi (a bracelet with knots) on their brothers' wrists, and the brothers swear to
protect their sisters. They purchase rakhis, sweets, and gifts for their siblings at this event.
4. Ganesh Chaturthi is a celebration of the birth of the Hindu god of wisdom and wealth, Lord
Ganesha. The attendees of this event purchase Lord Ganesha statues, food, and home decor.
5. The Hindu festival Navratri celebrates the triumph of good over evil. Fasting and the
traditional Garba and Dandiya dances are observed. Consumers purchase traditional attire,
jewellery, and accessories such as dandiya sticks during this festival.

Conclusion:
In conclusion, rituals have a substantial effect on client behaviour. These symbolic activities are
performed by individuals as part of their cultural or religious practice. Rituals establish an
emotional connection in addition to a sense of comfort and familiarity, which is advantageous for
both marketers and customers. In India, there are several rituals, and the goods and services
obtained at these events differ. By gaining an understanding of consumer habits, marketers can
create more effective products and services.
Answer for Question 3a:

Introduction:
Subcultures and cultures are crucial to marketing and consumer behaviour. The shared ideas,
values, customs, practices, and artifacts of a community or society constitute its culture. A
subculture, on the other hand, is a society within a civilization that has separate aims, values,
habits, and ways of life. Understanding culture and subculture is crucial for marketers because
they impact consumer behaviour and purchasing decisions. This essay defines culture and
subculture, examines four unique subcultures in India, and explains how these subcultures
influence purchasing decisions.

Concepts and applications:

Culture is a complex phenomenon that affects our ideas, attitudes, and actions. Language, religion,
customs, the arts, music, and food are examples of concrete and intangible cultural elements.
Socialization and education facilitate the intergenerational transfer of culture. In contrast, a
subculture is a small group inside a broader culture that shares distinctive views, values,
behaviours, and ways of life. Subcultures can be affected by age, gender, ethnicity, religion,
geography, and social class.

India contains numerous subcultures and cultures. Below are four separate subcultures and the
items and services they consume in India:
● Youth subculture is a community of young people with a shared identity and lifestyle. As
evident by their attire, music, and technical breakthroughs, the subcultures of India's youth
are influenced by Western culture and values. The subculture of young Indians has a
significant impact on the fashion and entertainment industries. They have an interest in
trendy clothing, accessories, and technology. Levi's, Nike, Adidas, Apple, and Samsung
are popular among the youth subculture of India.
● Religion plays a significant role in Indian culture, and the nation is home to a variety of
religious subcultures. For instance, the Hindu subculture is characterized by a range of
festivals, rituals, and customs. This subculture has a substantial impact on the acquisition
of religious artifacts such as idols, puja accessories, and festival attire. Similarly, the
 Muslim subculture in India has a considerable impact on the purchase of halal meat, prayer
mats, and religious books.
● Each Indian region has its unique language, customs, and culture. Due to the appeal of
regional cuisine and beverages among consumers, regional subcultures have a significant
impact on the food and beverage industry. South Indian subculture prefers dosas, idlis, and
filter coffee, whereas North Indian subculture prefers parathas, biryani, and tea. The
regional brands Amul, Britannia, Parle, and Haldiram appeal to subcultures.
● India is home to several tribal communities, each with its own culture, language, and
customs. There is a substantial effect of tribal subcultures on the acquisition of indigenous
commodities, clothing, and jewellery. The Warli tribe of Maharashtra, for instance, is
famed for their stunning Warli paintings, which are sold as souvenirs and home décor.
Similarly, the Banjara people of Rajasthan are renowned for their colourful embroidery
and mirror work, which they use to adorn their garments and accessories.

Conclusion:
Culture and subculture have a substantial impact on consumer behaviour and purchasing decisions
in India. The influence of India's varied subcultures on product/service buying must be understood
by marketers. In response to the various needs and preferences of specific subcultures, marketers
can build more effective personalised marketing strategies.
Answer for Question 3b:

Introduction:
The family life cycle encapsulates the many stages of a family's growth and development. At each
developmental stage, the family undergoes different structural, functional, and priority changes.
Understanding the family life cycle is essential for marketers because it allows them to tailor their
marketing strategies and product offers to the individual needs and preferences of the various
family stages. This study will investigate the family life cycle and its five stages, as well as the
most popular product categories at each stage.

Concepts and applications:

Cycle of Family Development:

Each stage of the family life cycle has its own set of structures, responsibilities, and guiding
principles. These are the five distinct phases of the family cycle:

● Bachelor I: It describes young adults who typically live alone and without parental
supervision. They are frequently single and fresh to the job force. They are committed to
professional development and network expansion. Families are particularly interested in
technology items such as telephones, computers, and headphones at the present time.
Accessories consist of footwear, jewellery, and casual apparel. Cosmetics, skin care
products, and grooming kits are included.
● Young Couple: Many young couples have recently tied the knot. They are typically in
their twenties or early thirties and childless. They are dedicated to advancing their careers,
incomes, and living situations. Refrigerators, washing machines, and microwaves are the
most popular product categories among households with this level of income. The category
of furniture includes mattresses, couches, and dining tables. Dining out and watching a
movie are examples of travel and amusement.
● Full Nest I: It indicate the existence of a spouse and infants. They value parenting,
financial management, and juggling work and family responsibilities. Nowadays, diapers,
infant formula, and baby food are the most popular categories of products for families.
Toys, literature, and educational activities that foster development and education. Home
improvements that include childproofing, storage solutions, and interior design.
 ● Full Nest II: These inhabitants are adolescents and older children. Often in their forties or
fifties, they focus on their children's education, extracurricular activities, and social lives.
They might be considering their own retirement. Tablets, mobile devices, and gaming
consoles, to name a few examples of modern technology, are the most popular product
categories among families at the present time. Opportunities for education and enrichment,
including tutoring, music sessions, and sports equipment. Wellness and healthcare,
including gym memberships, health insurance, and nutritional supplements.
● Old Couple: This period is characterized by the lack of dependent children. Prioritizes
retirement enjoyment, quality time with family, and health and well-being. Families favour
leisure and recreation products such as cruises, vacations, and hobbies during this time
period. Wellness and healthcare, comprising medical supplies, prescription drugs, and
insurance. Renovating a home entails downsizing, remodelling, and upgrading.

Conclusion:

According to the conclusion, the family life cycle is a crucial marketing and customer behaviour
idea. Understanding the many stages of the family cycle and the product categories chosen by
families at each stage is crucial for the development of efficient marketing strategies and goods.
By responding to the specific desires and expectations of each stage, marketers may produce more
effective, targeted, and personalized campaigns.